On January 1, 2021, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee’s acquisition-date fair values, Jay concluded that the carrying value of Zee’s long-term debt (8-year remaining life) was less than its fair value by $23,200. At December 31, 2021, Zee Company’s accounts show interest expense of $14,400 and long-term debt of $400,000. What amounts of interest expense and long-term debt should appear on the December 31, 2021, consolidated financial statements of Jay and its subsidiary Zee? Interest expense Long-term debt a. $17,300 $423,200 b. $17,300 $420,300 c. $11,500 $423,200 d. $11,500 $420,300 Option A Option B Option C Option D
On January 1, 2021, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee’s acquisition-date fair values, Jay concluded that the carrying value of Zee’s long-term debt (8-year remaining life) was less than its fair value by $23,200. At December 31, 2021, Zee Company’s accounts show interest expense of $14,400 and long-term debt of $400,000. What amounts of interest expense and long-term debt should appear on the December 31, 2021, consolidated financial statements of Jay and its subsidiary Zee? Interest expense Long-term debt a. $17,300 $423,200 b. $17,300 $420,300 c. $11,500 $423,200 d. $11,500 $420,300 Option A Option B Option C Option D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2021, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee’s acquisition-date fair values, Jay concluded that the carrying value of Zee’s long-term debt (8-year remaining life) was less than its fair value by $23,200. At December 31, 2021, Zee Company’s accounts show interest expense of $14,400 and long-term debt of $400,000. What amounts of interest expense and long-term debt should appear on the December 31, 2021, consolidated financial statements of Jay and its subsidiary Zee?
| Interest expense | Long-term debt | |
| a. | $17,300 | $423,200 |
| b. | $17,300 | $420,300 |
| c. | $11,500 | $423,200 |
| d. | $11,500 | $420,300 |
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Option A
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Option B
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Option C
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Option D
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